Treasure Trophy Company Case Study Solution and Analysis
Intro
Treasure Trophy Company Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized info service provider and a large extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Critical Issues
Although, Treasure Trophy Company Case Study Help has invested its 60 years journey efficiently, being an effective publishing house, however, the changing macro market trends and forces bring specific challenges to the publishing market in basic and CMP in specific. These aspects consist of;
• Entryway of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The improvement of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the capabilities of the business could be used to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Treasure Trophy Company Case Study Solution has specific strengths that can be utilized to decrease the threats, conquer the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Treasure Trophy Company Case Study Analysis in the publishing industry i.e. 60 years allows the company to supply high quality products at a lower expense using its previous experiences.
• The technical resources and abilities produced by its successful journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and provide high value to its consumers.
• Strong monetary position permits the company to consider several development chances with no worry of raising fund externally.
Weaknesses
Along with the strengths, the company has certain weak points which might increase restrictions for the company in executing its advancement program. The weak points of Treasure Trophy Company Case Study Help are offered as follows;
• Despite of being a science and technology publishing company, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose specific growth plans to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing market is declining given that 2008, impacting Treasure Trophy Company Case Study Solution as well, however the development could be restored by availing specific chances presented in the market. The marketplace chances for CMP include;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its large funds.
Hazards
The altering macro patterns in the market and increasing competition in the publishing market has positioned particular risks to Treasure Trophy Company Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of Treasure Trophy Company Case Study Help due to the consumer shift towards virtual libraries.
• The existence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by using specific methods like aggressive promotion, quality items, etc.
• Entryway of new publishing firms in the industry along with existence of high competition increases the risk of losing the customer base.
Financial Analysis.
The company has a quite competitive financial efficiency. Due to absence of information, the monetary ratios of CMP might not be calculated. However, the general monetary efficiency of the business could be examined by utilizing the charts given in the case Appendices. It could be examined from the Appendix III that the annual overall revenues of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the annual demand of the items of Treasure Trophy Company Case Study Help is growing and the company is quite effective in drawing in a large number of clients at a potential price.
In addition to it, the 2nd chart which shows the yearly development in the Treasure Trophy Company Case Study Analysis overall properties, reveals that the company is quite efficient in adding value to its possessions through its profits. The development in possessions reveals that the overall value of the firm is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the company using the offered data could be the analysis relating to the circulation of total revenues of the company. Major part of the revenues of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other service sectors with a prospective growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to learn the different external forces impacting the efficiency of the business and the recent patterns in the external environment of the business. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Party of China. It could be stated that the general political forces impacting CMP service are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP development of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to meet the changing customer choices.
Technological.
Technological forces affecting the CMP include the technological development in the reading techniques etc. Enhancement of science and technology together with the rise of digital publishing could reduce the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting Treasure Trophy Company Case Study Help includes the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing should not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be used to examine the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to attract new entrants to the publishing market. However, the existence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Risk of Substitution.
Threat of Substitution is high for the Chinese Publishing Market. The alternative products for the published files is the documents presented in the digital libraries on specific sites. The altering consumer choices towards digital learning increase the threat of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Treasure Trophy Company Case Study Analysis consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive costs.
Rivals Analysis.
CMP operates in a highly competitive industry with the presence of a great deal of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Treasure Trophy Company Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP easily in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to company scale. It is likewise one of the popular gamers in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation segments to the brand-new one can lead the business to lose need of its products in the market.
Suggestions
As the preferences are shifting towards digital publishing and the business need an immediate option to prevent the decreasing market development. The business might likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the business should first collects the data related to the customer demand, the prospective markets, the federal government guidelines and the information associated with the rivals presented in the market. After that, the business must choose one potential section for its initial offering. It ought to collect research study that how it could distinguish its digital publishing from the existing competitors' items. The actions above the business need to go for the initial offering. If the preliminary offering proves a success, the business must go for the other markets. In this method the company would have the ability to implement its digital publishing program.
Conclusion
The development of the publishing market is declining given that 2008, revealing a hazard to the business's long term existence, but the circumstance can be controlled by thinking about an advancement plan in the future. The business could consider introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the danger of failure for entryway in the brand-new markets.
